You're facing supplier risks in automotive parts. How can you diversify your base effectively?

During supplier selection it is important to understand the technology advantage that your best supplier provides versus their cost and manufacturing ability well before PPAP. A risk assessment can help put things in perspective early on in the program. It is always a good option to consider scalability of the part technology to other possible suppliers through SOR's with clearly defined targets at the start of the program. Creating the physical/virtual model or template of a reference part that can be mutually shared during early development can also help develop multiple suppliers that are equipped to compliment the supply chain well before production risks occur

Its most important to develop a long term relationship with suppliers based on Trust, commitment to Quality and ensuring that they are paid on time ( or before time sometimes ) Maruti Suzuki India Ltd has thousands of suppliers who have such relationships with them over the years even though MSIL doesn't pay them very high rates(as per my information). Due to this long term relationship, there are virtually no issues related to supply, be it Quality or Delivery on time

Essa análise detalhada dos riscos pode ajudar a empresa a tomar medidas proativas para fortalecer sua cadeia de suprimentos, garantindo uma maior segurança e robustez operacional. Ao identificar e gerenciar os riscos de fornecedores, a organização estará mais preparada para lidar com cenários adversos e garantir a continuidade das operações. É uma abordagem estratégica e preventiva que contribui significativamente para a sustentabilidade e a eficiência dos negócios.

Implement multi-sourcing for key components, ensuring global coverage to mitigate regional risks. Invest in supplier development and use data analytics to monitor risks. Negotiate flexible contracts to enable quick changes, and consider nearshoring for reduced lead times. Regularly audit supplier performance, engage in partnerships, and maintain contingency plans to enhance supply chain resilience.

Begin by developing a robust and detailed PPAP. Through this process, you will discuss run@rates, capabilities, and timeframes. You need to establish that the supplier can perform at the rate, cost and quality you need…and can sustain it.

Have to improve number of vanders. While giving order, will compare the cast, quality and availability. Some brands of companies are giving back of pay after completion of project or assesment.

To investigate new supplier is not a new task. However if I talk about automotive lighting suppliers, our organization like DVN is facilitating the connection. We are in India in September and OEM will be able to meet there the complete supply chain : lamp maker, tool maker, light source manufacturer, PCB manufacturer … Then your role is to evaluate their skills to develop and produce.

Me ayudara a conocer las preferencias de las personas es decir que repuestos buscan ejemplo productos originales o alternativos que en varios casos tienen una gran fluctuación en su valor de este modo me ayudara a entender el camino y las decisiones a tomar.

Identify Alternatives: Find multiple suppliers for critical parts. Build Partnerships: Develop strong relationships with diverse suppliers. Evaluate Globally: Consider suppliers from various regions. Monitor Performance: Regularly review supplier reliability. Negotiate Terms: Seek flexible supply agreements. Use Technology: Implement tools for tracking and managing risks.

One thing I found the useful here, Supplier capacity and reliability is important but cost of the part is also important. While the doing Market Research somany company have 1st priority is get parts in compititive price.

Proper supply chain risk management enables businesses of all shapes and sizes to take advantage of tried-and-true strategies that mitigate risk and set them up for success. In order to develop your own risk management strategy, it helps to first understand what supply chain risks you might face.

Diversification is the keyword for having a contingency plan that will walk you through any supply chain disruptions. As with Tier 1 suppliers price differences are not that high to become the key decision factor it’s important to establish healthy relationships with 2 or 3 additional players apart from your main source to ensure that you can control the supply chain flow and have a backup plan if things go south. Shifting a percentage of your procurements at a level of roughly 25% to additional sources not based on lowest price or best terms will provide the capacity to manoeuvre and ensure your flow even in the case of discrepancies in the market. Giving feedback to your suppliers on where they stand is the key for continuous improvement.

Strategic Sourcing can help in developing risks management. Understanding each one's vision and goals. The priority of the supplier of the standard and quality of parts being supplied on demand. To develop a business relationship is not a one day development, daily effort is required in order to maintain the best quality standard.

Diversifying the supplier base across different geographical regions helps balance costs and mitigate risks associated with market volatility. Moving towards regional suppliers can improve sourcing flexibility and speed up the time to market, especially during high demand periods.

Realizar um processo de avaliação completa no fornecedor é uma ferramenta muito eficaz para mitigar riscos e abrir novas fontes de fornecimento. Promover esse processo com uma equipe com representantes de áreas estratégicas como manutenção, engenharia, produção é um diferencial e torna mais assertivo. Convidar membros de outras áreas traz uma visão mais apurada sobre a condição do fornecedor. Avaliar a saúde financeira e os passivos devem ser vistos e comentados na avaliação. Utilizando essa abordagem, a decisão sobre a qualificação do fornecedor será de forma colegiada, obtendo melhor resultado de concordância da equipe.

Key supplier's risks to a business are: financial loss, operational disruptions, and reputational damage.... reliable parts supply chain must be able to address the 3 areas!

Technology and Innovative ways for continuous improvement: Making the global networking in the same sectors helps to build a good social circle. We never know what gonna happen for examples like Covid situation. So always it’s best to engage with suppliers who are the forefront of technology and innovation. Always work with suppliers on joint research and development projects.This helps to build a stronger healthy ergonomic relationships and reduces the likelihood of supply failures.Also choose suppliers from a diff. Countries to minimize the localized disruptions such as natural disasters or political crisis. Hope this will help! Best regards & thanks, Sreehemand Sreekumar

After finalizing the supplier, need to understand their lead time to supply the item, their quality standards are meeting our expectations and cost is in our budget.

O ideal é ter uma equipe multifuncional e uma metodologia de análise constante de fornecedores novos e atuais. Assim você garante continuamente a saúde da sua rede de fornecedores.

Don't be afraid to audit or assess the Vendor when there is a risk for new quality concerns, even if it was recently done. There might be something missed, changes could have been made at the vendors production line etc.

Keeping on regular follow ups about quality and lead time, we can check and assess the supplier risk management process. If quality is not matching, discuss and if needed remove that vendor from list and ask another substitute vendor.

An automated and well streamlined procurement system would be a good solution to this, where technical and commercial assessment is been carried out for every vendors that bids, contract, milestones capture for receipt and overall performance evaluation report can be retrieved with ease. In fact , alignments of budget can be set up as well as open and private bid. I had years of experience in the automobile industry and I know the stress and impact of supply. However, I am now working as a software engineer with a company providing enterprise resources solutions. Now, I don’t just know what the solution should look like but what should be. The best customizable solution for efficient operation is Fintrak software solution company.

One thing I found very helpful to do the innovation in supply chain from both side from supplier and OEM, so they can deal with uncertainty which will come in the supply chain due to part shortage. 1) How to reduced the damage while transport the parts. 2) Inventory cost for the storage near the workplace. So need to do the strong forecasting. While doing the forecasting need to involve the supplier company. 3) Perform trill for upcoming situation, with collaboration with supplier company. 4) Studing on new technologies for the production and warehouse. 5) Maintaining risk management team to study risk of supply chain & market demand.